|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits.
|
(d) |
Exhibits
|
Exhibit No.
|
Description
|
Press release, dated March 10, 2021, issued by International Money Express,
Inc.
|
|
104*
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
INTERNATIONAL MONEY EXPRESS, INC.
|
|||
Dated: March 10, 2021
|
By:
|
/s/ Ernesto Luciano
|
|
Name:
|
Ernesto Luciano
|
||
Title:
|
General Counsel
|
• |
Record Revenues of $99.3 million, an increase of 19.3% compared with the prior-year period
|
• |
Record Net Income of $9.6 million, an increase of 80.1%, and Basic and Diluted EPS of $0.25, up 78.6%, compared with the prior-year period
|
• |
Record Adjusted Net Income increased 54.3% to $11.7 million and Adjusted Basic and Diluted EPS grew 55.0% and 50.0% to $0.31 and $0.30 per
share, respectively, compared with the prior-year period
|
• |
Record Adjusted EBITDA of $18.7 million, an increase of 32.3% over the prior-year period
|
• |
A 14% increase in active customers compared with the prior-year period
|
• |
Record Revenues of $357.2 million, an increase of 11.8% compared with the prior year
|
• |
Record Net Income of $33.8 million, an increase of 72.3%, and Basic and Diluted EPS of $0.89 and $0.88, up 71.2% and 69.2%, respectively,
compared with the prior year
|
• |
Record Adjusted Net Income grew 30.0% to $42.3 million, and Adjusted Basic and Diluted EPS increased 27.6% and 26.4% to $1.11 and $1.10 per
share, respectively, compared with the prior year
|
• |
Record Adjusted EBITDA of $68.4 million, an increase of 18.7% over the prior year
|
December 31,
|
||||||||
(in thousands of dollars)
|
2020
|
2019
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$
|
74,907
|
$
|
86,117
|
||||
Accounts receivable, net of allowance of $1,503 thousand and $759 thousand, respectively
|
55,017
|
39,754
|
||||||
Prepaid wires, net
|
53,281
|
18,201
|
||||||
Prepaid expenses and current assets
|
3,521
|
4,155
|
||||||
Total current assets
|
186,726
|
148,227
|
||||||
Property and equipment, net
|
13,021
|
13,282
|
||||||
Goodwill
|
36,260
|
36,260
|
||||||
Intangible assets, net
|
20,430
|
27,381
|
||||||
Deferred tax asset, net
|
-
|
741
|
||||||
Other assets
|
3,036
|
1,415
|
||||||
Total assets
|
$
|
259,473
|
$
|
227,306
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt, net
|
$
|
7,044
|
$
|
7,044
|
||||
Accounts payable
|
12,771
|
13,401
|
||||||
Wire transfers and money orders payable, net
|
41,746
|
40,197
|
||||||
Accrued and other liabilities
|
22,380
|
23,074
|
||||||
Total current liabilities
|
83,941
|
83,716
|
||||||
Long-term liabilities:
|
||||||||
Debt, net
|
80,579
|
87,623
|
||||||
Deferred tax liability, net
|
692
|
-
|
||||||
Total long-term liabilities
|
81,271
|
87,623
|
||||||
Stockholders' equity:
|
||||||||
Total stockholders' equity
|
94,261
|
55,967
|
||||||
Total liabilities and stockholders' equity
|
$
|
259,473
|
$
|
227,306
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2018
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Wire transfer and money order fees
|
$
|
85,375
|
$
|
71,672
|
$
|
307,909
|
$
|
273,081
|
$
|
232,380
|
||||||||||
Foreign exchange, net
|
13,253
|
10,971
|
46,763
|
44,268
|
39,765
|
|||||||||||||||
Other income
|
674
|
600
|
2,537
|
2,252
|
1,756
|
|||||||||||||||
Total revenues
|
$
|
99,302
|
$
|
83,243
|
$
|
357,209
|
$
|
319,601
|
$
|
273,901
|
||||||||||
Operating expenses:
|
||||||||||||||||||||
Service charges from agents and banks
|
66,194
|
56,160
|
238,597
|
212,670
|
182,471
|
|||||||||||||||
Salaries and benefits
|
10,319
|
7,899
|
32,831
|
30,705
|
32,926
|
|||||||||||||||
Other selling, general and administrative expenses
|
5,259
|
6,247
|
22,086
|
27,095
|
19,442
|
|||||||||||||||
Transaction costs
|
-
|
-
|
-
|
-
|
10,319
|
|||||||||||||||
Depreciation and amortization
|
2,749
|
3,203
|
10,828
|
12,689
|
15,671
|
|||||||||||||||
Total operating expenses
|
84,521
|
73,509
|
304,342
|
283,159
|
260,829
|
|||||||||||||||
Operating income
|
14,781
|
9,734
|
52,867
|
36,442
|
13,072
|
|||||||||||||||
Interest expense
|
1,533
|
2,006
|
6,566
|
8,510
|
18,448
|
|||||||||||||||
Income (loss) before income taxes
|
13,248
|
7,728
|
46,301
|
27,932
|
(5,376
|
)
|
||||||||||||||
Income tax provision
|
3,628
|
2,387
|
12,517
|
8,323
|
1,868
|
|||||||||||||||
Net income (loss)
|
$
|
9,620
|
$
|
5,341
|
$
|
33,784
|
$
|
19,609
|
$
|
(7,244
|
)
|
|||||||||
Earnings (loss) per common share:
|
||||||||||||||||||||
Basic
|
$
|
0.25
|
$
|
0.14
|
$
|
0.89
|
$
|
0.52
|
$
|
(0.28
|
)
|
|||||||||
Diluted
|
$
|
0.25
|
$
|
0.14
|
$
|
0.88
|
$
|
0.52
|
$
|
(0.28
|
)
|
|||||||||
Weighted-average common shares outstanding:
|
||||||||||||||||||||
Basic
|
38,119,709
|
38,014,444
|
38,060,290
|
37,428,345
|
25,484,386
|
|||||||||||||||
Diluted
|
38,692,964
|
38,274,079
|
38,358,171
|
37,594,158
|
25,484,386
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2018
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Net income (loss)
|
$
|
9,620
|
$
|
5,341
|
$
|
33,784
|
$
|
19,609
|
$
|
(7,244
|
)
|
|||||||||
Adjusted for:
|
||||||||||||||||||||
Transaction costs (a)
|
-
|
-
|
-
|
-
|
10,319
|
|||||||||||||||
Incentive units plan (b)
|
-
|
-
|
-
|
-
|
4,735
|
|||||||||||||||
Share-based compensation (c)
|
1,028
|
715
|
3,237
|
2,609
|
1,091
|
|||||||||||||||
Offering costs (d)
|
30
|
4
|
509
|
1,669
|
-
|
|||||||||||||||
Transition expenses (e)
|
-
|
-
|
-
|
-
|
348
|
|||||||||||||||
Management fee (f)
|
-
|
-
|
-
|
-
|
585
|
|||||||||||||||
TCPA Settlements (g)
|
2
|
378
|
60
|
3,736
|
192
|
|||||||||||||||
Registration costs (h)
|
-
|
-
|
-
|
-
|
615
|
|||||||||||||||
Other employee severance (i)
|
-
|
-
|
-
|
172
|
106
|
|||||||||||||||
Loss on bank closure (j)
|
-
|
-
|
252
|
-
|
-
|
|||||||||||||||
Other charges and expenses (k)
|
111
|
100
|
637
|
305
|
410
|
|||||||||||||||
Amortization of certain intangibles (l)
|
1,710
|
2,312
|
6,841
|
9,248
|
12,392
|
|||||||||||||||
Income tax benefit related to adjustments (m)
|
(793
|
)
|
(1,263
|
)
|
(2,981
|
)
|
(4,789
|
)
|
(5,187
|
)
|
||||||||||
Adjusted net income
|
$
|
11,708
|
$
|
7,587
|
$
|
42,339
|
$
|
32,559
|
$
|
18,362
|
||||||||||
Adjusted earnings per common share
|
||||||||||||||||||||
Basic
|
$
|
0.31
|
$
|
0.20
|
$
|
1.11
|
$
|
0.87
|
$
|
0.72
|
||||||||||
Diluted
|
$
|
0.30
|
$
|
0.20
|
$
|
1.10
|
$
|
0.87
|
$
|
0.72
|
(a)
|
Represents direct costs related to the Merger in 2018. These costs consist primarily of legal, consulting, accounting, advisory fees and
certain incentive bonuses.
|
(b)
|
In connection with a prior acquisition (the "Merger"), incentive units were granted to our employees, which became fully vested and were paid
out upon the closing of the Merger.
|
(c)
|
Stock options and restricted stock were granted to employees and independent directors of the Company.
|
(d)
|
Represents expenses incurred for professional and legal fees in connection with secondary offerings of the Company’s common stock and
Warrants Offer.
|
(e)
|
Represents recruiting fees and severance costs related to managerial changes in connection with becoming a publicly-traded company in 2018.
|
(f)
|
Represents payments under a management agreement with Stella Point for certain advisory and consulting services until 2018. In connection
with the Merger, this agreement was terminated.
|
(g)
|
Represents legal fees and charges for the settlement of a class action lawsuit related to the Telephone Consumer Protection Act.
|
(h)
|
Represents professional fees in connection with the registration of common stock underlying outstanding warrants.
|
(i)
|
Represents severance costs incurred related to departmental changes.
|
(j)
|
Represents a loss incurred in 2020 related to the closure of a financial institution in Mexico.
|
(k)
|
Includes loss on disposal of fixed assets and foreign currency (gains) losses.
|
(l)
|
Represents the amortization of certain intangible assets that resulted from the application of push-down accounting.
|
(m)
|
Represents the current and deferred tax impact of the taxable adjustments to net income using the Company’s blended federal and state tax
rate for each period. Relevant tax-deductible adjustments include all adjustments to net income.
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
(in thousands of dollars)
|
2020
|
2019
|
2020
|
2019
|
2018
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Net income (loss)
|
$
|
9,620
|
$
|
5,341
|
$
|
33,784
|
$
|
19,609
|
$
|
(7,244
|
)
|
|||||||||
Adjusted for:
|
||||||||||||||||||||
Interest expense
|
1,533
|
2,006
|
6,566
|
8,510
|
18,448
|
|||||||||||||||
Income tax provision
|
3,628
|
2,387
|
12,517
|
8,323
|
1,868
|
|||||||||||||||
Depreciation and amortization
|
2,749
|
3,203
|
10,828
|
12,689
|
15,671
|
|||||||||||||||
EBITDA
|
17,530
|
12,937
|
63,695
|
49,131
|
28,743
|
|||||||||||||||
Transaction costs (a)
|
-
|
-
|
-
|
-
|
10,319
|
|||||||||||||||
Incentive units plan (b)
|
-
|
-
|
-
|
-
|
4,735
|
|||||||||||||||
Share-based compensation (c)
|
1,028
|
715
|
3,237
|
2,609
|
1,091
|
|||||||||||||||
Offering costs (d)
|
30
|
4
|
509
|
1,669
|
-
|
|||||||||||||||
Transition expenses (e)
|
-
|
-
|
-
|
-
|
348
|
|||||||||||||||
Management fee (f)
|
-
|
-
|
-
|
-
|
585
|
|||||||||||||||
TCPA Settlements (g)
|
2
|
378
|
60
|
3,736
|
192
|
|||||||||||||||
Registration costs (h)
|
-
|
-
|
-
|
-
|
615
|
|||||||||||||||
Other employee severance (i)
|
-
|
-
|
-
|
172
|
106
|
|||||||||||||||
Loss on bank closure (j)
|
-
|
-
|
252
|
-
|
-
|
|||||||||||||||
Other charges and expenses (k)
|
111
|
101
|
637
|
305
|
410
|
|||||||||||||||
Adjusted EBITDA
|
$
|
18,701
|
$
|
14,135
|
$
|
68,390
|
$
|
57,622
|
$
|
47,144
|
(a)
|
Represents direct costs related to the Merger in 2018. These costs consist primarily of legal, consulting, accounting, advisory fees and
certain incentive bonuses.
|
(b)
|
In connection with a prior acquisition (the "Merger"), incentive units were granted to our employees, which became fully vested and were paid
out upon the closing of the Merger.
|
(c)
|
Stock options and restricted stock were granted to employees and independent directors of the Company.
|
(d)
|
Represents expenses incurred for professional and legal fees in connection with secondary offerings of the Company’s common stock and
Warrants Offer.
|
(e)
|
Represents recruiting fees and severance costs related to managerial changes in connection with becoming a publicly-traded company in 2018.
|
(f)
|
Represents payments under a management agreement with Stella Point for certain advisory and consulting services until 2018. In connection
with the Merger, this agreement was terminated.
|
(g)
|
Represents legal fees and charges for the settlement of a class action lawsuit related to the Telephone Consumer Protection Act.
|
(h)
|
Represents professional fees in connection with the registration of common stock underlying outstanding warrants.
|
(i)
|
Represents severance costs incurred related to departmental changes.
|
(j)
|
Represents a loss incurred in 2020 related to the closure of a financial institution in Mexico.
|
(k)
|
Includes loss on disposal of fixed assets and foreign currency (gains) losses.
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2018
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
GAAP Earnings (Loss) per Share - Basic
|
$
|
0.25
|
$
|
0.14
|
$
|
0.89
|
$
|
0.52
|
$
|
(0.28
|
)
|
|||||||||
Adjusted for:
|
||||||||||||||||||||
Transaction costs
|
-
|
-
|
-
|
-
|
0.40
|
|||||||||||||||
Incentive units plan
|
-
|
-
|
-
|
-
|
0.19
|
|||||||||||||||
Share-based compensation
|
0.03
|
0.02
|
0.09
|
0.07
|
0.04
|
|||||||||||||||
Offering costs
|
NM
|
NM
|
0.01
|
0.04
|
-
|
|||||||||||||||
Transition costs
|
-
|
-
|
-
|
-
|
0.01
|
|||||||||||||||
Management fee
|
-
|
-
|
-
|
-
|
0.02
|
|||||||||||||||
TCPA Settlement
|
NM
|
0.01
|
NM
|
0.10
|
0.01
|
|||||||||||||||
Registration costs
|
-
|
-
|
-
|
-
|
0.02
|
|||||||||||||||
Loss on bank closure
|
-
|
-
|
0.01
|
-
|
-
|
|||||||||||||||
Other employee severance
|
-
|
-
|
-
|
NM
|
NM
|
|||||||||||||||
Other charges and expenses
|
NM
|
NM
|
0.02
|
0.01
|
0.02
|
|||||||||||||||
Amortization of certain intangibles
|
0.04
|
0.06
|
0.18
|
0.25
|
0.49
|
|||||||||||||||
Income tax benefit related to adjustments
|
(0.02
|
)
|
(0.03
|
)
|
(0.08
|
)
|
(0.13
|
)
|
(0.20
|
)
|
||||||||||
Adjusted Earnings per Share - Basic
|
$
|
0.31
|
$
|
0.20
|
$
|
1.11
|
$
|
0.87
|
$
|
0.72
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2018
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
GAAP Earnings (Loss) per Share - Diluted
|
$
|
0.25
|
$
|
0.14
|
$
|
0.88
|
$
|
0.52
|
$
|
(0.28
|
)
|
|||||||||
Adjusted for:
|
||||||||||||||||||||
Transaction costs
|
-
|
-
|
-
|
-
|
0.40
|
|||||||||||||||
Incentive units plan
|
-
|
-
|
-
|
-
|
0.19
|
|||||||||||||||
Share-based compensation
|
0.03
|
0.02
|
0.08
|
0.07
|
0.04
|
|||||||||||||||
Offering costs
|
NM
|
NM
|
0.01
|
0.04
|
-
|
|||||||||||||||
Transition costs
|
-
|
-
|
-
|
-
|
0.01
|
|||||||||||||||
Management fee
|
-
|
-
|
-
|
-
|
0.02
|
|||||||||||||||
TCPA Settlement
|
NM
|
0.01
|
NM
|
0.10
|
0.01
|
|||||||||||||||
Registration costs
|
-
|
-
|
-
|
-
|
0.02
|
|||||||||||||||
Loss on bank closure
|
-
|
-
|
0.01
|
-
|
-
|
|||||||||||||||
Other employee severance
|
-
|
-
|
-
|
NM
|
NM
|
|||||||||||||||
Other charges and expenses
|
NM
|
NM
|
0.02
|
0.01
|
0.02
|
|||||||||||||||
Amortization of certain intangibles
|
0.04
|
0.06
|
0.18
|
0.25
|
0.49
|
|||||||||||||||
Income tax benefit related to adjustments
|
(0.02
|
)
|
(0.03
|
)
|
(0.08
|
)
|
(0.13
|
)
|
(0.20
|
)
|
||||||||||
Adjusted Earnings per Share - Diluted
|
$
|
0.30
|
$
|
0.20
|
$
|
1.10
|
$
|
0.87
|
$
|
0.72
|
Three Months Ended December, 31,
|
Year Ended December 31,
|
|||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2018
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Net income margin
|
9.7
|
%
|
6.4
|
%
|
9.5
|
%
|
6.1
|
%
|
-2.6
|
%
|
||||||||||
Adjusted for:
|
||||||||||||||||||||
Interest expense
|
1.5
|
%
|
2.4
|
%
|
1.8
|
%
|
2.7
|
%
|
6.7
|
%
|
||||||||||
Income tax provision
|
3.7
|
%
|
2.9
|
%
|
3.5
|
%
|
2.6
|
%
|
0.7
|
%
|
||||||||||
Depreciation and amortization
|
2.8
|
%
|
3.8
|
%
|
3.0
|
%
|
4.0
|
%
|
5.7
|
%
|
||||||||||
EBITDA Margin
|
17.7
|
%
|
15.5
|
%
|
17.8
|
%
|
15.4
|
%
|
10.5
|
%
|
||||||||||
Transaction costs
|
-
|
-
|
-
|
-
|
3.8
|
%
|
||||||||||||||
Incentive units plan
|
-
|
-
|
-
|
-
|
1.7
|
%
|
||||||||||||||
Share-based compensation
|
1.0
|
%
|
0.9
|
%
|
0.9
|
%
|
0.8
|
%
|
0.4
|
%
|
||||||||||
Management fee
|
-
|
-
|
-
|
-
|
0.2
|
%
|
||||||||||||||
TCPA settlements
|
0.0
|
%
|
0.5
|
%
|
0.0
|
%
|
1.2
|
%
|
0.1
|
%
|
||||||||||
Transition expenses
|
-
|
-
|
-
|
-
|
0.1
|
%
|
||||||||||||||
Offering costs
|
0.0
|
%
|
0.0
|
%
|
0.1
|
%
|
0.5
|
%
|
-
|
|||||||||||
Loss on bank closure
|
-
|
-
|
0.1
|
%
|
-
|
-
|
||||||||||||||
Registration costs
|
-
|
-
|
-
|
-
|
0.2
|
%
|
||||||||||||||
Other employee severance
|
-
|
-
|
-
|
0.1
|
%
|
0.0
|
%
|
|||||||||||||
Other charges and expenses
|
0.1
|
%
|
0.1
|
%
|
0.2
|
%
|
0.1
|
%
|
0.1
|
%
|
||||||||||
Adjusted EBITDA Margin
|
18.8
|
%
|
17.0
|
%
|
19.1
|
%
|
18.0
|
%
|
17.2
|
%
|